Any beginners guide on how to make passive income should begin by establishing just what that means. Passive income as the name suggests is earning money without working. You may be thinking is it really possible to make money without work. Well not only is it possible but you can actually build a substantial residual income over time.

Lets look at some options that allow you to make passive income. But first we need to establish one important thing. You need to understand the reality of passive income. You may have heard the term “make money while you sleep”. I don’t want you to fall for the idea that you can have a push button business that you set up and are rich overnight.

If you want passive income you have to accept that it won’t happen from day 1. You have to put in the effort first to set up a system that will make you money in the future. Think of it like planting a seed of a perennial plant. With some methods the germination period will be quite short while others will take more time.

You need to nurture your “seed” idea to ensure it grows. You need to supply a stream of visitors, known as traffic.

reasons some people will never succeed online

Read this guide before you begin. It highlights many of the problems you need to avoid to have a successful business online.



Blogging to Make Money

One of the most popular choices for people looking to make money online is by blogging. You can start a blog on just about any topic and find a way to monetize it. The general idea is that you choose a topic to write about that you have a real passion for.

Choose a topic you care about and you get several advantages:

  1. If you are going to write articles, known as blog posts, yourself then you will be more likely to keep going if you are actually interested in the topic. You can begin by writing about your own experience and expand into researching and reviewing the subject.
  2. When you are blogging in a niche market that you understand you will write in a language that your audience expects. If you are starting a blog on rap music but you are more into Frank Sinatra or Beethoven it is not likely to go well. Don’t start a blog on technology if you are a complete technophobe.
  3. You will know what is important to your readers and will find it easier to establish relationships with potential partners later.

You could possibly get round some of these problems by outsourcing the work. Outsourcing is an easy way to make passive income as all you need to do is find a good writer. You can either decide on the topics that you want blog posts on and order specific articles or give them a broad subject and let them also do the research.

It may be that you don’t want to outsource work when you begin. In that case it is preferable to find ways to combine your knowledge or interests with your work.

How to Make Passive Income from a Blog

So you have set up your blog, written articles and now you want to know how to monetize it. The simplest way is through affiliate marketing. You can search for products or services related to your blog topic where companies are willing to pay you an affiliate commission for selling their offers.


Join an affiliate program

Firstly you can go to a site that lists advertisers that are looking for affiliates. Some of these are Clickbank, Shareasale, CJ. Alternatively you can search online by typing “your niche” + affiliate into a search engine. This will throw up individual companies that are looking for affiliates to promote for them.

Some companies will not accept everyone. You will need to have a quality blog complete with privacy notices and affiliate disclosures. Also many companies will require you to have a lot of traffic before they will agree to accept you.


Display native ads

You have probably seen native ads without really noticing. When you visit a website and see blocks of articles in the sidebar or at the bottom of the article, many of those will be advertisements. Often these are designed to look like the normal articles but if you look closely you will see they say Ad somewhere.

Most Ad networks require minimum traffic numbers so you may have to wait to implement this. While you are waiting you should begin studying the ads to see what the wording is. You may not yet be at the stage of being able to afford to advertise but you can use similar copywriting tactics for your blog posts. Notice which ads make you want to click. Often the most successful ads will be open questions that cause intrigue. Do you click because you just have to know the answer.

The other thing that successful ads have is an intriguing picture. Perhaps you can’t quite work out what it is or how it is relevant. Start to take note of what it has that makes you notice and consider how you could use something similar in your own ads in the future.


Google Adsense

You will have seen Google Adsense advertising online. It is a very common choice for beginner bloggers to monetize their blogs. Google have made it easy to display their ads. You can choose an automatic option and let them decide where to display ads on your site so it is simply a case of adding a piece of code to your site using a plugin.


CPA Marketing

CPA stands for Cost Per Acquisition or Cost Per Action it means that you will be paid if you get a person to do something. Often you can be paid just by someone clicking on the ad. This method is called pay per click advertising.

Sometimes you will only be paid if someone submits their email, signs up for an offer or completes a survey etc. As a general rule the more arduous the task that needs to be completed the higher the payout will be.

The payout also varies from one industry to another. Companies that put high worth on leads are willing to pay well for new leads. Some of the best payments will come from insurance companies and legal firms.

Most of these companies have rules about the type of traffic that is accepted. Some of these rules will apply to blog posting, email marketing etc. Other rules will include only accepting leads from certain countries.

Make sure when you choose a CPA offer that you study what is and is not allowed. If you break the rules you will not be paid and will probably be banned from the network.


How To Make Passive Income Without Blogging

Set up a Membership Site

Now this is another area that at first glance seems like it wouldn’t be very passive. However the beauty of a membership site is that you can earn recurrent income. Imagine having members and knowing that you are going to be getting money every month without doing anything.

To turn this into a passive source of income you will need to provide information that people will become hooked on and want to remain as members. Again you could outsource the content or write it yourself. If you pick an evergreen topic that will not go out of fashion you can do this once and earn money forever.

You may need to update the content to keep up to date with any changes and you will also need to provide support to your members. But guess what, you can outsource that also if you want to.

One approach to this would be to have your membership as an extension to your blog. You can have content on the blog for all visitors and then upsell them to your membership for more detailed information or additional resources.

Produce an Online Course

This is not going to be the easiest option. You may want to begin with the other options above and consider this once you are making money online from the more passive ways to make money.

If you want to become a course creator then it requires work. However that work can be done once and then earn passive income. In that way it has much in common with the membership idea. The downside is that it will be a one time sale and won’t generate recurrent income.

If you choose this option then you can of course outsource a lot of the work. Are you seeing a pattern here? You can outsource just about anything these days. You can find people to design and host websites, write articles, generate traffic, produce promotional videos and make products.

Indeed if you go this course creation route then I would advise against trying to do everything yourself. Be honest, you can’t be good at everything. Professional graphics could generate a lot more sales than something you come up with if design is not your thing. Also you may have heard that time is money and another is that money loves speed. The quicker you get your product to market the better. If you are tempted to spend hours doing everything yourself, work out what your average hourly rate is going to be. Do you think your time is worth more than that?


Write a Book

Many similarities to producing a course here but without the need initially to have a converting sales page and fancy graphics. I am not expecting you to become the next J.K.Rowling or Charles Dickens but even short reads can become moneymaking ventures.

In the world of the internet you no longer need to send hundreds of manuscripts trying to find a publisher. You can self publish a book from home. It seems like most people have a Kindle these days and Amazon make it easy to self publish a novel or non fiction book. In fact there are so many choices of what you can publish. Short stories, children’s books, fiction and non fiction all have there place. You can even publish low content books like journals or coloring books that take little time to produce.

The benefit of publishing a book on Amazon is that you may get sales with less promotion. There are ways to make this easier which I will discuss in another post.

Which Passive Income Method Is Right For You?

All of these ideas on how to make passive income can be successful. The important thing is to find the one that appeals to you the most and focus on making a successful business. Pick one and focus on it until you are making money from home and generating passive income.

You must commit and FOCUS then you will be successful. Remember FOCUS stands for Follow One Course Until Successful. Don’t be tempted to dart from one idea to another until you have got the first one working. You can begin making money quickly but it may take time to build up to a job replacing income. It is definitely possible to make six figures a year on the internet but you need to set realistic SMART goals that are timed sensibly.

You probably shouldn’t be telling your boss where to stick his job initially. These ideas can all be set up as side hustles to make extra income from home. When you are making an income you are happy with you will be more confident to replace your job with your home business.


What You Need To Get Started Making Money From Home

There are some initial costs that any home business needs to make money online.

  • To have a presence online you need a domain name. This will become the URL for your business. Put some thought into what you want your brand to represent. You could choose your own name if you want to become the public face of your business or you can pick a name to represent your niche. This is down to personal preference. The latter option is better if you want to sell your business in future. Even if you choose the second option, I suggest also buying your name in case you want it in future. If you have a common name and it has been taken by someone else then add something to it e.g. BillSmithOnline, BillSmithCourses etc. Namecheap is my preferred choice for domains. They offer free privacy protection which others charge for.
  • You need a website or blog. The best option for beginners to make money is a WordPress blog. This is easy to use, requires no coding and can be made to do many things by the use of plugins. And good news, it’s free!
  • So your blog is free but it needs to be hosted somewhere. This means you need a hosting package at a site which will hold all your files. Bluehost is a good choice.
  • You need to choose your monetization method from the above suggestions.
  • In order to make money from a website or blog you need traffic. Pick a traffic method that suits your style and budget. You can generate leads from social media, writing articles, guest blogging or paid advertising.
  • No matter how much traffic you can attract, it will not be possible to make money unless you can get them to take action. Turning traffic into sales is known as conversion. This requires you to have the ability to write in a way that makes visitors click on your links and take action. If you are acting as an affiliate the advertiser may provide tested material. You still want to put your own spin on this to make it relevant to your audience.
  • If you are promoting your own course or membership then you will be responsible for converting traffic into sales. This requires some talent in copywriting. This is a skill that requires a complete article on it’s own but a good place to begin is with this free 7 part copywriting course. I hope you take advantage of that as it usually sells for $97 but I got you a link for free access.


Take Action Today and Make Passive Income Tomorrow

Hopefully this beginners guide on how to make passive income has given you some ideas. Now go out there and make money. Nothing happens without action. If not now, when? The sooner you start, the sooner you will have a successful home based business. Any one can do this from your children to your Granny, in fact it is a great way to make money in retirement.

Leave a comment below to say which online business appeals to you the most. When you have a successful home based business I would love to know how you got on.




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